AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
11/13/2019: Gold rises on CPI, trade doubts
Source: Bill Musgrave, American Gold Exchange
Austin — Breaking a four-session losing streak, gold rose 0.7% to close above $1,463 as risk aversion returned to the market with higher inflation and renewed doubts about the prospects for a US-China trade deal.
The Consumer Price Index rose 0.4% in October, the biggest jump in seven months, as Americans paid more for gasoline, medical care, and recreational items like tickets and cable TV. Real hourly earnings, or earnings above inflation, decreased 0.2%.
Negotiations for the widely publicized "phase one" trade agreement between the US and China, expected in December, have hit snags, according to the Wall Street Journal. While China was supposed to buy $50 billion annually in US farm products, it will no longer commit to that amount. And both sides disagree on the timing and amounts of tariff reduction.
Wall Street slipped into the red early on the growing trade doubts before rebounding to modest gains. The Dow added 0.3% while the S&P 500 edged up 0.1% and the tech-heavy Nasdaq was flat.
Treasury yields fell as investors shifted from risk-on sentiment to safe-haven demand.
Fed Chair Jerome Powell told Congress that interest rates will stay where they are unless the economy experiences a marked deterioration or inflation rises sharply. The Fed has cut interest rates three times this year to offset slowing growth and the fallout from trade conflicts.
Powell also voiced concerned that the long-term federal budget, which is projected to be $1.1 trillion in the next fiscal year, "is on an unsustainable path" that will hamper the government's ability to respond to any future recessions.
The other precious metals were also higher, with silver rising 1.3% while platinum and palladium climbed 0.6% and 0.3%, respectively.
At the Comex close: December gold gained $9.60 to $1,463.30; December silver rose 22 cents to $16.91; January platinum picked up $4.90 to $874.80; and December palladium added $5, to $1,675.10 an ounce.
AGE Gold Commentary
After breaking out to a 6-year high of $1,560 in September, gold is consolidating gains of 14% for the year, its best since 2010 ... read more